How to Get a Mortgage in the U.S.?

So you're thinking about buying a home in the U.S.? It's a significant milestone, and getting the right mortgage is just as crucial as finding your dream property. If you're new to all this, you might be wondering where to even start, what mortgage lenders are actually looking for, and which type of loan would work best for your situation.

I get it - there's a lot to take in. Between the different types of mortgages, various requirements, and all the financial considerations, it can feel like you're trying to solve a complex puzzle. But don't worry - we're going to break this down step by step, from getting pre-qualified all the way through to closing day.

Let's look at what's happening in the housing market right now, because it helps to know the landscape. The story of 2024 has been interesting - homeownership in the U.S. actually dipped to 65.6% in the second quarter, which is the lowest we've seen in two years. While fewer people under 44 are buying homes, we're seeing more homeowners in older age groups. First-time buyers are still making moves though - they made up about a third of all purchases in 2023. We're also seeing some challenges, with mortgage delinquencies climbing to 3.97% in the second quarter. But it's not all concerning news - the number of households keeps growing (we're at 132.4 million now), and many buyers are still willing to meet asking prices. Location makes a big difference too - take West Virginia, for example, where 77% of residents owned their homes by the end of 2023.

By the time we're done here, you'll have a clear picture of how mortgages work, what today's market looks like, and most importantly, how to approach homeownership with confidence.

BeMyNeighbour (BMN) is a veteran-operated mortgage brokerage serving 27 U.S. states. Founded in 2018 and headquartered in Denison, Texas, BMN helps individuals and families make informed real estate financing decisions.

• Home Purchase Loans & Refinancing for better terms

• Rate Comparisons & Property Evaluations

• Cash-Out Refinancing to access home equity

• Local Expertise: BMN’s lenders understand state-specific mortgage regulations to ensure compliance and optimal financing.

• Personalized Loan Matching: Tailored mortgage recommendations based on credit, income, and homeownership goals.

• End-to-End Support: Full guidance from pre-approval to closing for a smooth process.

• Exclusive Tools: Mortgage calculators, lender comparisons, and home-buying guides.

• BMN Debt Locker: A unique tool helping homeowners track, manage, and optimize their mortgage and other debts efficiently.

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved

Getting a mortgage in the U.S. involves several key steps, from assessing your financial readiness to securing a lender. This process typically includes applying, providing documentation, and finalizing the terms of your loan.

Before applying for a mortgage, you’ll need to evaluate your finances, as lenders will assess your credit score, debt-to-income (DTI) ratio, and employment history to determine eligibility.

• Credit Score: Most conventional loans require a minimum credit score of 620, while FHA loans allow scores as low as 500 with a higher down payment.

• Debt-to-Income Ratio (DTI): Most lenders prefer a DTI below 43%, though some loan programs allow higher ratios.

• Employment & Income Stability: Lenders typically require at least two years of steady employment and proof of income through W-2 forms, tax returns, or pay stubs.

💡 Quick Tip: Check your credit report for errors and pay down debts to improve your approval odds before applying for a mortgage.

A mortgage pre-approval is an essential step that shows sellers you’re a serious buyer and gives you a clear idea of your budget.

Income & employment history (W-2 forms, pay stubs, tax returns).

Credit report & score to assess financial risk.

Estimated down payment & loan amount you qualify for.

✔ Stronger negotiation power – Sellers are more likely to accept offers from pre-approved buyers.

✔ Faster closing process – You’ve already completed part of the loan approval process.

✔ Clear budget estimate – Avoid wasting time looking at homes outside your price range.

💡 Pro Tip: Many lenders allow digital mortgage pre-approvals, making it easier to submit your documents online.

U.S. homebuyers have multiple loan options, each catering to different financial situations.

Choosing the right mortgage is key to homeownership in the U.S. Common options include fixed-rate, adjustable-rate, and government-backed loans like FHA, VA, and USDA. Each serves different financial needs, so understanding them helps secure the best deal.

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved

Mortgage rates fluctuate, so it's important to shop around for the best deal.

Once you've chosen a mortgage, you’ll need to formally apply and provide financial documents

Once you've chosen a mortgage that fits your financial needs, the next step is to formally apply. This process involves providing detailed financial information to the lender so they can assess your creditworthiness and approve your loan.

Lenders require several key documents to verify your income, assets, and financial stability. These typically include:

• Copies of your federal tax returns (IRS Form 1040) with all schedules.

• If you’re self-employed, lenders may require business tax returns as well.

• W-2s (if you’re a salaried employee) or 1099s (for independent contractors and freelancers).

• Helps lenders verify your annual income and employment status.

• Checking and savings account statements to show cash reserves.

• Lenders use these to confirm your down payment funds and assess spending habits.

• A letter from your employer confirming your position, salary, and length of employment.

• Recent pay stubs (typically last two) may also be required.

• Lenders pull your credit report to check your credit score and debt repayment history.

• You may need to provide statements for outstanding debts such as car loans, student loans, and credit cards.

Home Appraisal – The lender orders an appraisal to determine the property's value.

Underwriting – The lender reviews all financial documents and approves (or denies) the loan.

💡 Quick Tip: Avoid making large purchases or opening new credit accounts during underwriting—it could delay or jeopardize your mortgage approval.

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved

The final step is closing day, where you’ll sign mortgage documents and officially become a homeowner!

✔ Down payment (if required)

✔ Loan origination fees

✔ Homeowners insurance

✔ Property taxes

✔ Title & escrow fees

💡 Quick Tip: Closing costs typically range from 2-5% of the loan amount—ask about seller concessions or lender credits to reduce these expenses.

Securing a home loan in the U.S. can feel overwhelming, but with the right guidance, it becomes an exciting step toward homeownership. Whether you’re a first-time buyer, an investor, or a non-U.S. citizen looking for a mortgage, we’re here to help.

Contact us today for a free consultation and find the best mortgage lenders, rates, and loan options for your U.S. dream home! 🏡🔑

Most conventional loans require a minimum credit score of 620, while FHA loans allow scores as low as 500 with a 10% down payment (or 580 with 3.5% down). VA and USDA loans have more flexible requirements.

A fixed-rate mortgage has the same interest rate for the entire loan term, ensuring stable monthly payments. An adjustable-rate mortgage (ARM) starts with a lower rate but adjusts periodically, making it riskier if interest rates rise.

Lenders typically require W-2 forms, tax returns (last 2 years), pay stubs, bank statements, credit report, and employment verification. Self-employed borrowers may need additional business financial documents.

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved